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Nucor Shares Slide, Earnings Forecast Signals Further Decline

EditorVenkatesh Jartarkar
Published 10/20/2023, 03:15 AM
Updated 10/20/2023, 03:15 AM
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect

Nucor Corporation (NYSE: NYSE:NUE) closed the latest trading day at $143.75, marking a 0.94% decrease from the previous session. This move underperformed the S&P 500's daily loss of 0.85%, as well as the Dow and Nasdaq's losses of 0.75% and 0.96%, respectively. Over the past month, Nucor's shares have declined by 6.62%, lagging behind the Basic Materials sector's loss of 6.34% and the S&P 500's loss of 3.02%. As per InvestingPro data, the company's 1 Month Price Total Return is -7.19%, and over a three-month period, it stands at -13.13%.

The Zacks Consensus Estimates project Nucor to report earnings of $4.18 per share on October 24, 2023—a year-over-year decline of 35.69%. Revenue is predicted to be $8.51 billion, down 18.99% from the same quarter last year. Full-year earnings and revenue are projected at $17.63 per share and $34.4 billion, respectively, indicating year-over-year declines of -38.76% and -17.13%. Interestingly, according to InvestingPro data, the company's P/E Ratio is 6.62 and the adjusted P/E Ratio for LTM2023.Q2 is 7.0, indicating a potentially undervalued stock.

Nucor is part of the Steel - Producers industry with a Zacks Industry Rank of 156, carries a Zacks Rank of #3 (Hold), and trades at a Forward P/E ratio of 8.23—slightly below the industry average—despite a downward shift in Zacks Consensus EPS estimate by 2.73%. This suggests that investors are cautious about the company's future performance amid challenging market conditions.

InvestingPro Tips highlights that Nucor yields a high return on invested capital and has a strong earnings history that should allow management to continue dividend payments. The company has raised its dividend for 13 consecutive years and operates with a high return on assets. These factors, combined with a market cap of 35.75B USD as per InvestingPro data, show Nucor as a strong player in the Metals and mining industry.

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For more tips like these, investors can explore the InvestingPro product which includes a total of 21 additional tips. These insights can provide a deeper understanding of the company's performance and potential growth trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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